1. Field of the Invention
This invention relates generally to systems, devices, products, apparatus, and methods for detecting potential money laundering activities and, in one particular embodiment, to a system, product, and method for detecting potential money laundering activities based on transaction data associated with transaction involving at least one issuer institution.
2. Technical Considerations
Money laundering is the process of making illegally gained proceeds appear legal. Anti-money laundering (AML) is a term that may be used by the financial and legal industries to describe legal controls that require financial institutions and other regulated entities to prevent, detect, and report money laundering activities.
In some instances, financial institutions that operate in a country generally have to follow the same AML laws and regulations as other financial institutions in that country; however, financial institutions may structure their anti-money laundering efforts slightly differently. In some instances, financial institutions may rely on AML software to meet the legal requirements for financial institutions and other regulated entities to prevent or report money laundering activities.
However, the AML software may fail to provide a financial institution with an accurate picture of potential money laundering activities. For example, a financial institution's AML software may produce a large number of inaccurate alerts regarding potential money laundering activities. In addition, the large number of inaccurate alerts may overburden financial institution's AML software and may result in an ineffective allocation of resources by the financial institution and/or by authorities based on inaccurate reporting of potential money laundering activities.